Saudi Aramco announced its financial results for the third quarter of 2020, which witnessed a significant improvement in all aspects from the results of the previous quarter of the year. It comes as other international oil companies incurred losses in the third quarter, with only a few recording modest profits. Aramco remains the most profitable among the major international oil companies in the third quarter in this pandemic year. Unlike many of its peers, the company is less exposed to the collapse of oil prices and reduced global demand linked to the coronavirus pandemic. Faisal Faeq Low oil prices as well as historically low refining margins have resulted in losses for many of the industry’s big players, but not, it is worth noting, for Saudi Aramco. Unlike many of its peers, the company is less exposed to the collapse of oil prices and reduced global demand linked to the coronavirus pandemic because of its exceptional operational flexibility, low debt ratio, diversification of revenue streams and most importantly, its production costs which are the lowest in the world. Its operational flexibility is indeed unique, allowing the world’s largest oil company to rapidly increase or decrease production as circumstances dictate. Saudi Aramco recorded SR70.5 billion cash flow from its operations, and SR46.5 billion free cash flow in the quarter. Unlike many of its rivals, it managed to raise its cash liquidity and cash equivalent to SR198 billion, compared to SR172 billion in the same quarter of last year. The company remains committed to its generous distributions, as in the third quarter it paid its shareholders SR70.3 billion in cash dividends for the second quarter, and also approved the same distributions as dividends for the third quarter, distributed in the fourth quarter of the year. Faisal Faeq is an energy and oil marketing adviser. He was formerly with OPEC and Saudi Aramco. Twitter:@faisalfaeq Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News" point-of-view